Introduction | p. xi |
Understanding Your Options | p. 1 |
Solving the Stock Option Dilemma | p. 3 |
Exercising Too Soon | p. 5 |
Exercising Without a Plan | p. 7 |
The Tax/Max Disaster | p. 9 |
The Critical Capital Strategy--Solving the Stock Option Dilemma | p. 12 |
Calculating Your Critical Capital | p. 14 |
Annual Expenses | p. 15 |
Rate of Return | p. 16 |
The Critical Capital Strategy in Action | p. 17 |
You Can Make Good Decisions! | p. 20 |
Getting to Know Your Options: Unraveling the Mysteries of Your Option Agreement | p. 23 |
Employee Stock Options: What They Are and How They Work | p. 24 |
Basic Grant Data | p. 25 |
Methods of Exercising Your Options | p. 30 |
When the Unexpected Happens | p. 32 |
Transferring Your Options | p. 34 |
Other Clauses | p. 35 |
Activity | p. 36 |
Use the Web Site! | p. 36 |
Option Agreement Worksheet | p. 37 |
What You Need to Know About Taxes | p. 39 |
Options and Taxes | p. 40 |
Activity | p. 42 |
Types of Income | p. 44 |
Summary of Basic Concepts | p. 45 |
Stock Option Tax Planning | p. 45 |
Nonqualified Stock Options | p. 46 |
Restricted Stock and the 83(b) Election | p. 48 |
Incentive Stock Options | p. 50 |
The Alternative Minimum Tax | p. 54 |
Using Stock Instead of Cash to Exercise Options | p. 56 |
Activity | p. 59 |
Use the Web Site! | p. 59 |
Net Option Value Worksheet | p. 59 |
Leverage: The Key to the Wealth-Creating Power of Your Options | p. 61 |
The Hidden Power of Options: Leverage | p. 62 |
Which to Hold--Which to Sell | p. 68 |
Key Points | p. 73 |
Activity | p. 74 |
Use the Web Site! | p. 74 |
Leverage Worksheet A | p. 74 |
Leverage Worksheet B | p. 75 |
Investment Risks of Your Options | p. 77 |
Risk, What Risk? | p. 79 |
Options as an Investment | p. 79 |
Basic Investment Risk | p. 80 |
Measuring Risk | p. 82 |
Market Risk | p. 83 |
Business Risk | p. 85 |
Evaluating Your Options as an Investment | p. 86 |
Managing the Risk of Your Options | p. 90 |
Activity | p. 93 |
Personal Risks of Your Options | p. 95 |
Risk: The Possibility of Loss | p. 95 |
Can You Afford to Take the Risk? | p. 96 |
Feel the Value | p. 97 |
Critical Capital Risk | p. 104 |
Activity | p. 113 |
Use the Web Site! | p. 113 |
Future Values Worksheet | p. 115 |
Making the Most of Your Options | p. 117 |
Five Steps to a Successful Exercise Strategy | p. 119 |
Clarify Your Goals | p. 120 |
Quantify Your Goals | p. 121 |
Analyze Your Options | p. 122 |
Consider the Taxes | p. 123 |
Create a Strategy | p. 123 |
Activity | p. 124 |
Cashing In to Buy: Using Your Options to Buy What Your Paycheck Won't | p. 125 |
The Major Purchase: Cashing In to Buy a Car | p. 126 |
A Larger Home: Cashing In to Move Up | p. 131 |
Additional Income: Cashing In to Make Ends Meet | p. 136 |
Activity | p. 144 |
Use the Web Site! | p. 144 |
Option Cash In Worksheet | p. 145 |
Using Your Options to Reach Critical Capital and Financial Freedom | p. 147 |
Case Study: Kent and Kelly | p. 148 |
The Critical Capital Strategy | p. 152 |
Impact of Expenses on Critical Capital | p. 153 |
Impact of Rate of Return on Critical Capital | p. 155 |
Solving Kent and Kelly's Dilemma | p. 162 |
Solving Gary's Dilemma | p. 165 |
Activity | p. 168 |
Use the Web Site! | p. 168 |
Critical Capital Calculation Worksheet | p. 169 |
Protecting Your Financial Freedom | p. 171 |
Case Study: Dave and Sally | p. 171 |
Protecting Your Critical Capital | p. 179 |
The Need to Sell the Stock--Some Historical Examples | p. 181 |
Impact of Volatility on Income-Producing Capital | p. 186 |
Protecting Dave and Sally's Critical Capital | p. 190 |
Activity | p. 191 |
Use the Web Site! | p. 191 |
Using Your Options for Others: Charitable and Estate Planning | p. 193 |
Warning: Don't Do This on Your Own! | p. 195 |
Estate and Gift Tax Basics | p. 195 |
Option-Giving Basics | p. 201 |
Potential Tax Savings: An Illustration | p. 203 |
Giving Beyond the Family | p. 206 |
Charitable-Giving Basics | p. 207 |
Charitable Trust: Solving Multiple Problems | p. 210 |
A Closing Word | p. 212 |
Changing Employers: Mergers, Acquisitions, and Taking a New Job | p. 213 |
Mergers and Acquisitions | p. 213 |
Before You Leave Your Current Job | p. 217 |
Before You Take a New Job | p. 221 |
Activity | p. 231 |
Use the Web Site! | p. 233 |
Facing Special Circumstances: Divorce, Disability, and Death | p. 235 |
Divorce | p. 236 |
Disability | p. 240 |
Death | p. 243 |
Activity | p. 249 |
Use the Web Site! | p. 251 |
Nuts and Bolts: The Mechanics of Exercising and Records You Need to Keep | p. 253 |
Exercising Your Options | p. 253 |
Records You Need to Keep | p. 262 |
Activity | p. 273 |
Use the Web Site! | p. 273 |
Grant Exercise Record | p. 274 |
Post-Exercise Disposition and Sale Record | p. 275 |
Where to Turn When You Need More Help | p. 277 |
For More Information | p. 278 |
For Professional Help | p. 280 |
In Closing | p. 285 |
Use the Web Site! | p. 286 |
Index | p. 287 |
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